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Understanding the Reinsurance Industry Training Course (ONLINE EVENT: November 6-7, 2024)

  • Training

  • 2 Days
  • Nov 6th 09:30 - Nov 7th 17:30 GMT
  • Falconbury Ltd
  • ID: 5972427
OFF until Oct 02nd 2024

Put simply, reinsurance is best thought of as “insurance for insurance companies,” a way for a primary insurer to protect against unforeseen or extraordinary losses. It serves to limit liability on specific risks, to increase individual insurers’ capacity and to share liability when losses overwhelm the primary insurer’s resources. It also helps insurers stabilize their business in the face of the wide swings in profit and loss margins inherent in the insurance business.

However, the reinsurance industry is much more complex than one statement, professionals working within the industry are tending to specialise in one area and lose touch with the trends and challenges faced by this global business as a whole. Whether you are new to the industry or need to get back in touch with the dynamics of the industry as a whole, then this reinsurance training course is for you.

Why you should attend

The experienced faculty will demystify all aspects of the reinsurance industry that participants might be new to, unfamiliar with or have lost touch with.

Topics covered include:

  • Part 1: The building blocks - understand the need for reinsurance and its relevance to your role
  • Part 2: The reinsurance market - get-to-grips with the role of the reinsurance market and how it works
  • Part 3: The legal and regulatory framework - build your knowledge of how the industry is controlled and regulated
  • Part 4: Practical applications - Demystify the terminology and activities that are specific to the insurance industry


  • CPD: 12 hours for your records
  • Certificate of completion

Course Content

Day 1
  • Why is understanding reinsurance important?
  • Risk management for insurers
  • The uses and benefits of reinsurance
  • How reinsurance interacts with an insurer’s business activities
What is reinsurance? Its purposes and functions
  • Introduction of basic concepts
  • Concepts of sharing/mitigating/laying off/risk
  • Methods and types (proportional and x/l, treaty and facultative)
  • Types and functions of reinsurance treaties
  • How proportional and x/l work
  • Their different uses and purposes
  • The role of the Cedant company: what protection and capital support do you need; risk spreading
Facultative reinsurance - PRACTICAL WORKSHOP (A)
  • Concept - ‘individual risks’
  • Premium calculation proportional and x/l (two methods)
  • ‘as original’
  • Worked exercises:premium/ rating and claims allocation
  • Advantages and disadvantages - development of the treaty
Treaty reinsurance - PRACTICAL WORKSHOP (B)
  • Constructing a simple; proportional reinsurance treaty; elements of a bordereau
  • Balance of a portfolio/treaty/excess-of-loss contract
  • Worked exercise: setting cessions; creating bordereau; accounting
  • Excess-of loss treaties/contracts: types of contract
  • Exposure to the treaty; setting the deductible and limit; layers of coverage
  • Rating (exposure or burning cost basis; rate-on-line); reinstatements
  • Operation - how claims recoveries work; some claim calculation exercises
Underwriting reinsurance
  • Main tasks and challenges of the reinsurance underwriter
  • Setting the retention
    • “Technical rates”; actuaries, cat modellers, statisticians and other animals
    • Risk appetite
    • Rating methods in detail
  • Underwriting guidelines
  • The underwriter’s risk assessment process; the reinsurance information
  • “Know your customer”
  • Buyer’s perspective
Reinsurance agreements
  • Why have a wording?
  • The London Market Contract
  • Key drafting concepts (construction, interpretation, implied terms)
  • Facultative certificates; “as original”
  • Nature of the reinsurance contract
  • Incorporation of clauses
  • Key clauses (follow, ultimate net loss, warranties and conditions)
  • Law and jurisdiction clauses
  • Other key clauses; the structure of a typical wording
Main world markets
  • Difference between broker and direct markets
  • London and Lloyd’s market
  • USA (New York; California)
  • SE Asia
  • Continental Europe
Market specialists in arranging reinsurance: brokers and underwriters
  • The chain of the reinsurance business
  • Role of the broker vs direct placings
  • Market practice and agency rules
  • Duties of reinsurance brokers
  • Role of the underwriter
The reinsurance captive market
  • Definitions
  • History
  • Locations
  • “Captive” reinsurers/industry mutuals/captive managers
  • Application of reinsurance recoveries
Alternative risk transfer mechanisms
  • Reinsurance pools
  • What is a pool and how does it work?
  • Principal-to-principal implications and accounting arrangements
  • Examples: Pool Re, Flood Re, Florida Windstorm Underwriting Association
  • Insurance linked securities and alternative risk transfer, catastrophe bonds
  • Distinction from traditional reinsurance
  • Does the reinsured have to prove a loss?
QuestionsDay 2Introduction and recap of day onePART 3: LEGAL AND REGULATORY FRAMEWORK
The law of reinsurance - introduction
  • Development of the law of reinsurance; predominance of English reinsurance law and English jurisdiction
  • Sources of English law; The UK Insurance Act 2015 and beyond
  • Common law and civil law jurisdictions
  • Issues that commonly give rise to disputes
  • Rules for choice of law and jurisdiction, international enforcement of judgements and awards
  • Construction of reinsurance contracts - the courts’ approach
The regulation of reinsurance
  • Regulation and solvency
  • UK bifurcated (Twin Peak) regulation (prudential vs consumer protection)
  • EU: Solvency II/Capital requirements
  • Nigerian and other sub-Saharan approaches
  • International aspects; worldwide convergence
Developments post Brexit
  • UK licences to trade in EU countries and vice versa; Lloyd’s Brussels; Lloyd’s Insurance Co Ltd
  • Continued centrality of London?
  • Proposed changes to prudential regulation
  • New FCA approach
  • Judgements of ECJ
Reinsurance claims management
  • Claim management - what, why and how
  • Questions of non-disclosure/misrepresentation/underwriting information
  • Litigation management from a claims perspective
  • In-house counsel and independent lawyers
  • Use of Inspections of Records Clause
Claims reserving
  • Why reserve? Importance in technical account
  • Case reserves
  • Using information from reinsured
  • What is IBNR (long and short tail needs)? Approaches to estimation
PRACTICAL EXERCISE: Simple “link-ratio” calculation of IBNR
Run-off and commutations
  • What is run-off?
  • Different legal run-off vehicles
  • Part VII Transfers - latest developments
  • Loss portfolio transfers
  • What are Schemes of Arrangement?
  • Commutations explained
Dealing with reinsurance disputes
  • Litigation or arbitration? International disputes
  • Jurisdiction and choice of law
  • Principles and procedures for reinsurance arbitrations
  • Alternative Dispute Resolution (including conciliation and mediation)
  • The Bermuda Form
  • Major dispute resolution centres (England; New York; Dubai; Singapore)
Final questions and summary

Course Provider

  • Phillippa Rowe
  • Phillippa Rowe,
    Phillippa Ross & Co

    Phillippa Rowe, senior partner of independent reinsurance consultants Phillippa Ross & Co., has over 30 years experience of insurance and reinsurance claims in Lloyd’s and the London market and internationally. She began her reinsurance career with 15 years with the Kiln group at Lloyd’s. She currently acts as arbitrator, mediator, expert witness and technical consultant in a wide range of claims, wordings and market practice matters and writes, lectures and provides training courses on similar subjects.

  • Simon Cooper
  • Simon Cooper,
    Ince & Co

    Simon Cooper is a Consultant at Ince & Co LLP. He has experience of advising clients in the London and international insurance and reinsurance markets and has extensive experience of acting in large scale disputes in the English Commercial Court and appellate Courts, in ad hoc arbitrations and in overseas jurisdictions. Many of these disputes have involved multiple parties and complex issues of fact and law. Simon also has comprehensive experience of mediation and other forms of Alternative Dispute Resolution. Simon’s practice focuses on reinsurance, financial lines and professional indemnity business but has included most areas of non-marine business.

Who Should Attend

This programme has been designed specifically for:

  • Reinsurance company employees
  • Reinsurance broker company employees
  • Insurance and reinsurance company professionals
  • Lawyers in private practice
  • Regulators
  • Brokers
  • Insurance and reinsurance consultants and advisers

Plus, those who have recently joined the reinsurance industry and suppliers to the industry including software, recruitment and accountancy personnel.